UAE Among Arab World's Most Economically Free Economies, Says New Report
The index uses 2024 data and gives the UAE an overall score of 7.42 out of 10.
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The UAE is the second most economically free economy in the Arab world and the Gulf. Bahrain ranks 40th, with a score of 7.49. Jordan follows the UAE in 50th place (7.38), while Saudi Arabia ranks 60th (7.17).
The UAE recorded the strongest results in the Gulf in two of the index's five areas.
The UAE topped the Gulf rankings for legal systems and property rights, scoring 7.08 and ranking 30th globally, ahead of Saudi Arabia, which ranked 47th, and every other GCC state.
In terms of freedom to trade internationally, the UAE scored 8.62, ranking 33rd globally and ahead of Qatar.
The UAE also ranked 29th globally for regulation, with a score of 7.23, and 76th for sound money, with a score of 8.47.
Hong Kong tops global rankingHong Kong remains the world's most economically free jurisdiction, with a score of 8.53, despite a sharp decline in its score since 2018. It is followed by Switzerland (8.45), Singapore (8.43), New Zealand (8.38) and the United States (8.21).
Ireland, Denmark, Australia and Mauritius complete the top nine, while Finland, the Netherlands and the United Kingdom are tied for 10th place. Venezuela ranks last.
Global economic freedom remains below pre-pandemic levels.
The report says governments raised trade barriers, expanded regulation and spending, and printed money after 2020. Although they have begun to reverse course, every area other than freedom to trade internationally recorded a lower score in 2024 than in 2019. The unweighted global average was 6.62 in 2024, while the population-weighted average was 6.42.
“Global economic freedom fell during the pandemic as policymakers imposed new regulations, raised barriers to trade, increased government spending and taxes, and then printed money to pay for spending,” said Matthew Mitchell, a senior fellow at the Fraser Institute and a co-author of the report.
Major economies and South AsiaJapan ranks 13th, while Canada has slipped from ninth to 18th and Germany ranks 19th. France is 39th, Italy 47th, South Korea 53rd, Indonesia 72nd, Mexico 77th, Brazil 85th, India 88th, China 110th and Russia 143rd.
In South Asia, Nepal ranks 90th, Sri Lanka 119th, Bangladesh 129th and Pakistan 133rd.
A preliminary estimate for the US in 2025 shows a 0.12-point decline, which the authors attribute to a larger government, weaker property rights and significant trade restrictions.
The freest 25 per cent of countries have average incomes 6.9 times higher than those of the least free quarter. In the freest countries, incomes for the poorest 10 per cent are 7.1 times higher, people live 14 years longer and work six fewer hours a week.
The authors note that the index measures economic freedom, not living standards or personal freedoms, and does not account for the potential benefits of regulation or taxation.
The 10 lowest-ranked countries are Congo, Egypt, Malawi, Algeria, Iran, Myanmar, Libya, Sudan, Zimbabwe and Venezuela.
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